• Courts Uphold MERS Serving as “Nominee” on Mortgage Instruments
  • March 8, 2011
  • Law Firm: Mayer Brown LLP - Chicago Office
  • In recent weeks, several courts have issued opinions upholding the use of Mortgage Electronic Registration Systems, Inc. (MERS)—an electronic registry created by the mortgage banking industry to track transfers in servicing rights and beneficial ownership of millions of mortgage loans around the nation. Although some courts require a greater showing of an agency relationship between MERS and the noteholder than others (see In re: Agard, discussed below), the opinions confirm that there is nothing improper about MERS serving as mortgagee of record in a capacity as “nominee” for the original lender and its successors and assigns.